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Murillo Boccia 05/11/2017 Digital Digital

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Murillo Boccia05/11/2017Digital

Digital

The world is changing fast

- Natura is a big social network;

Hundreds of Relationship Managers are connected to thousands of advisors/leaders, who are connected to 1.3mn consultans. And those to 100mn consumers.

- The contemporaneity of personal recommendation

- Chat conversations

- Storytelling

-

Total affinity with the digital world

Two important Digitalization initiatives

• To transform the current business

Segmentation

Mobility

New tools

CRM, Data, analytics, recommendation

• New Digital business

Supplement Direct Sales to consumer

Offer new shopping experience

Provide data and intelligence to deliver an omnichannel experience

Trend: In Asia, largest CFT Market in the world (>US$130bn), non-store retail (DS and online) gains space in exchange of traditional retail.

Transformar oNegócio Existente

Construir um novoNegócio Digital

Digital: Two initiatives that will meet

To transform the current business

To build a New Digital business

Mobility will accelerate this meeting

All sales force and consumers connected in an

ecosystem of providing

beauty services, convenience,

communication and real-time interaction.

1 To transform the current business

99.65% of all orders are

captured digitally

Voice caption

Communication and interactivity solutions

Augmented reality

NEW EXPERIENCElayout and navigation

focused on direct sales dynamics

Customized banners

Customized offer recommendations

Automatic promotion

leverage

Customized coupons you

can share

Import and export orders

worksheetsPayment options: prepaid and credit card

New promotions: bonus points, payment and

minimum order

Analytics to usability

(Dynatraceand Google Analytics)

Responsive design, multi-browser and

multi-device

Ready to multiple

languages and regional

Display for promotional

products

Diretoria de Operações DigitaisComitê Estratégico agosto/16

2- The New Digital Business - Rede Natura: an end-consumer platform, which is inclusive to the consultant

Diretoria de Operações DigitaisComitê Estratégico agosto/16

2- Rede Natura

• The consumers take the action to shop

• Creation of the Natura Digital Consultant, with their own URL

• Enables delivery nationwide

• Regains proximity with young, AB income classes consumers

• Offers more convenience, specially for daily use products

• Modernization and rejuvenation of the Natura brand

• Widens experience to Consultants and Consumers

Diretoria de Operações DigitaisComitê Estratégico agosto/16

The advantages of becoming a Digital Consultant

When you become a NDC, you increase your number of clients and revenue.

It is possible to offer more than one shopping alternative to clients.

100% of products in stock, for everyone to buy, everywhere

There is no minimum order

The products are the same as in the magazine: there is everything the client wants

Exclusive advantages and promotions to clients

Supplementary gains to direct sales

about delivery: Natura delivers everything and the client pays the freight

No default. Natura manages payment, and clients can use credit card and installments.

Sales and digital marketing training to power your sales

Diretoria de Operações DigitaisComitê Estratégico agosto/16

Rede Natura: Digital consultants access digital tools

Diretoria de Operações DigitaisComitê Estratégico agosto/16

Algorithms help the Consultants with the hard part

Diretoria de Operações DigitaisComitê Estratégico agosto/16

At the same time, Natura also welcomes the client who prefers self-service in e-commerce

Diretoria de Operações DigitaisComitê Estratégico agosto/16

More than welcomes, talks to them on the Web

Diretoria de Operações DigitaisComitê Estratégico agosto/16

Customization and sustainability

Diretoria de Operações DigitaisComitê Estratégico agosto/16

Customization and sustainability

Diretoria de Operações DigitaisComitê Estratégico agosto/16

Customization and sustainability

Diretoria de Operações DigitaisComitê Estratégico agosto/16

Rede Natura

Growth in 2016 > 100%1.85 million consumersPositive EBITDA in the

Diamont E-bit certification2015

Most admiredcosmetics and fragrance

2016 and 2017

with no indicative of cannibalization

From 2015 to 2016 an 8% INCREASE in direct selling

and 14% aggregated with Rede Natura

5% DECREASE from 2015 to 2016

Analysis Group Consultants who joined the Rede Natura in 2016

Control GroupConsultants who did not join the Rede Natura

SUBTITLE:2015 DS2016 DS

2016 Rede Natura

R$R$

months months

A new client

Client profile is differentWe bring in new clients

+ Younger+ Urban+ Higher Income

d

d

d

d

CFs Venda Direta CFs Rede Natura

FAIX

A E

TÁR

IA

50+

40 a 49

30 a 39

Até 294,3

33,7 34,227,9

0

10

40

50

NI Alto Médio Baixo

Economic Potential -IBGE

Rede ECPhysical Consultant

Direct Sales End Consumer (EC) Rede Natura End Consumer (EC)

Direct Sales End Consumer (EC) Rede Natura End Consumer (EC)

Rede Natura - Chile

Rede Natura - Argentina

Naturabrasil.com USA

Naturabrasil.fr France

CONSULTANT APP:

315k Active Downloads10,2% Higher Productivity

15% of revenue

NATURA APP:

200k Active Downloads25% Retention

10% revenue

Convergence

o Capillarity

o Higher agility, efficiency and quality

in launching products

o Endorsement and advocacy

marketing

o Service provision

o Potential use of network assets

Direct sales has potential to add great value to the OMNiCHANNEL strategy: Digital catalyzes

SHOPPER

RETAIL

E-COMMERCEDIRECTSALES

EXPERIENCE

Obrigado!Gracias!Thank you!Merci!

[email protected]